Abstract

This Working Paper details the benefits associated with Retail Digital Signage (“RDS”), and introduces the theory of Behavioral Merchandising (“BEM”). RDS’s attributes as a new medium due to its ability to mass-customize messages, as well as measure advertising effectiveness, are addressed. Due to the characteristics of RDS, the medium is also uniquely capable of building customer relationships by facilitating retailer and/or brand differentiation, which requires a closed-loop, intelligent content systemization. Toward that end, this Working Paper details the theory of BEM. BEM is defined as the methodology for predicting and influencing consumer purchase behavior in-store by messages delivered via a digital signage system. The objective of BEM is to stimulate the consumer buying process by mass-customization of targeted messages. The output is an organized development of content strategy.